Retirement Planning via SIP: In how many years can Rs 7,000 monthly investment reach Rs 3 crore, Rs 4 crore or Rs 5 crore goal?
Retirement Planning via SIP: If you want to build a substantial corpus for your retirement, investing in a Systematic Investment Plan (SIP) may be beneficial. It is an investment option that helps investors achieve long-term financial goals, such as building a substantial corpus for retirement, marriage, education, etc. In this write-up, we will demonstrate how a monthly SIP of Rs 7,000 can help you reach the targets of Rs 3 crore, Rs 4 crore, and Rs 5 crore.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
Assuming 12% Annualised Return
For this calculation, we are assuming an annualised return of 12 per cent.
How many years will it take for your Rs 7,000 monthly investment to reach the Rs 3 crore target?
To build a corpus of Rs 3 crore, you will need to invest in an SIP for at least 32 years.
Total investment in 32 years
If you invest Rs 7,000 monthly for 32 years, your total investment will amount to Rs 26,88,000.
Estimated capital gain in 32 years
With an annualised return of 12 per cent, the estimated capital gain could be around Rs 2,88,77,079.
Total amount after 32 years
By adding the initial investment to the capital gain, the total corpus could grow to approximately Rs 3,15,65,079 after 32 years.
How many years will it take for your Rs 7,000 monthly investment to reach the Rs 4 crore target?
To build a corpus of Rs 4 crore, you will need to invest in an SIP for at least 34 years.
Total investment in 34 years
If you invest Rs 7,000 monthly for 34 years, your total investment will amount to Rs 28,56,000.
Estimated capital gain in 34 years
With an annualised return of 12 per cent, the estimated capital gain could be around Rs 3,74,13,977.
Total amount after 34 years
By adding the initial investment to the capital gain, the total corpus could grow to approximately Rs 4,02,69,977 after 34 years.
How many years will it take for your Rs 7,000 monthly investment to reach the Rs 5 crore target?
To build a corpus of Rs 5 crore, you will need to invest in an SIP for at least 36 years.
Total investment in 36 years
If you invest Rs 7,000 monthly for 36 years, your total investment will amount to Rs 30,24,000.
Estimated capital gain in 36 years
With an annualized return of 12 per cent, the estimated capital gain could be around Rs 4,82,98,888.
Total amount after 36 years
By adding the initial investment to the capital gain, the total corpus could grow to approximately Rs 5,13,22,888 after 36 years.
Important Points to Remember
It’s important to understand that SIPs are market-linked investments, meaning returns are not guaranteed.
12% return is an estimate
The 12 per cent return mentioned in the above calculations is an estimate, and actual returns may vary depending on market conditions.